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Abraaj Capital, a Middle East and North Africa-focused private equity firm, has agreed to divest its shareholding in Turkish healthcare provider Acibadem Saglik Yatirimlari Holding to the investment arm of the Malaysian government, Khazanah Nasional.

Khazanah Nasional and its portfolio company Integrated Healthcare Holdings have agreed to acquire a 75% shareholding in Acibadem from Abraaj Capital and family shareholder the Aydinlar family in a deal worth $1.03bn through a combination of cash payment and the exchange of newly issued IHH shares.

With the conclusion of the deal, Abraaj and the Aydinlar will retain shareholdings of 4.2% and 7.1% respectively in the new combined group, with existing IHH minority shareholder Mitsui also retaining a stake. The new entity will operate across China, the Middle East and Eastern Europe, according to a spokesman for Abraaj.

Arif Naqvi, the founder and group chief executive of Abraaj Capital, said: “Our investment in Acibadem validates our thesis of investing in high growth regions and high impact sectors. We remain committed to our existing investments in Turkey and to capitalising on the promising opportunities that lie ahead.”

A spokesman for Abraaj said that under its ownership Acibadem has grown to become one of Turkey’s largest private healthcare groups, with operational presence growing from six to 14 hospitals and bed capacity increased from 750 to over 1,850 in four years. As a result, the company’s Ebitda more than doubled from 2007-2010 and 5,000 new jobs were created across Acibadem’s hospitals, creating value for all stakeholders.

Since its founding in 2002, Abraaj now manages over US$6bn of equity assets with investments in 35 portfolio companies spread across the region including low cost air carrier Air Arabia and medical testing laboratory business Al Borg Laboratories.